Why $190 bn bank loan clean-up is the only way to revive India's growth

So far, lenders have recovered the equivalent of about $11 billion, or about 43 per cent, of the $25 billion in dues admitted by courts in 94 cases of default, according to a Crisil report

Reforms meant to clean up $190 billion of stressed bank loans will be crucial to reviving economic growth during Narendra Modi’s second term as prime minister.

Just days after a landslide electoral victory, Modi is being forced to focus on the economy after the slowest expansion in five years. A crisis among shadow lenders has curbed advances from the sector and hit consumer spending in recent months, coming on top of years of sluggish credit growth at banks hamstrung by non-performing loans. Revitalising lenders is essential to jump-starting private investments and consumer spending.

Investors expect Modi to complete reforms started during his